Home > Releases > Global Financial Development > Boone Indicator in Banking Market for Kenya
Boone Indicator in Banking Market for Kenya (DDOI05KEA156NWDB)
Observation:
2015: 0.10 (+ more)Updated: Aug 30, 2017
2015:  0.10  
2014:  0.26  
2013:  0.09  
2012:  0.13  
2011:  0.11 
Units:
Index,Not Seasonally Adjusted
Frequency:
AnnualA measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a translog cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by moreefficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bankbybank data from Bankscope)
Source Code: GFDD.OI.05
Boone Indicator in Banking Market for Kenya
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A measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a translog cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by moreefficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bankbybank data from Bankscope)
Source Code: GFDD.OI.05
Boone Indicator in Banking Market for Kenya
Customize data:
Write a custom formula to transform one or more series or combine two or more series.
You can begin by adding a series to combine with your existing series.
Now create a custom formula to combine or transform the series.
Need help? []
For example, invert an exchange rate by using formula 1/a, where “a” refers to the first FRED data series added to this line. Or calculate the spread between 2 interest rates, a and b, by using the formula a  b.
Use the assigned data series variables (a, b, c, etc.) together with operators (+, , *, /, ^, etc.), parentheses {(,)}, and constants (1, 1.5, 2, etc.) to create your own formula (e.g., 1/a, ab, (a+b)/2, (a/(a+b+c))*100). As noted above, you may add other data series to this line before entering a formula.
Finally, you can change the units of your new series.
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Title  Release Dates  


Boone Indicator in Banking Market for Kenya  20120924  20170612 
Source  


World Bank  20120924  20170612 
Release  


Global Financial Development  20120924  20170612 
Units  


Index  20120924  20170612 
Frequency  


Annual  20120924  20170612 
Seasonal Adjustment  


Not Seasonally Adjusted  20120924  20170612 
Notes  


A measure of degree of competition based on profitefficiency in the banking market. It is calculated as the elasticity of profits to marginal costs. An increase in the Boone indicator implies a deterioration of the competitive conduct of financial intermediaries. A measure of degree of competition, calculated as the elasticity of profits to marginal costs. To obtain the elasticity, the log of profits (measured by return on assets) is regressed on the log of marginal costs. The estimated coefficient (computed from the first derivative of a translog cost function) is the elasticity. The rationale behind the indicator is that higher profits are achieved by moreefficient banks. Hence, the more negative the Boone indicator, the higher the degree of competition is because the effect of reallocation is stronger. Estimations of the Boone indicator in this database follow the methodology used by Schaeck and Cihák 2010 with a modification to use marginal costs instead of average costs. Regional estimates of the Boone indicator pool the bank data by regions (for more information, see Hay and Liu 1997; Boone 2001; Boone, Griffith, and Harrison 2005). (Calculated from underlying bankbybank data from Bankscope) Source Code: GFDD.OI.05 
20120924  20170612 
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